JANUARY
In January, a High Court decision in the case of Phillips v Francis caused widespread concern throughout the industry. The then Chancellor of the High Court, Sir Andrew Morritt, ruled that, without appropriate dispensation, all qualifying works in a building are subject to consultation in advance, if they will cost any flat owner more than £250.
January also saw the government challenged in the House of Lords over the existing £500 costs limit in the Leasehold Valuation Tribunal. Baroness Gardner argued that whilst the LVT allowed every leaseholder to bring their case to tribunal, many landlords were charging hefty legal expenses back through management schemes in blocks of flats.
In January, a High Court decision in the case of Phillips v Francis caused widespread concern throughout the industry. The then Chancellor of the High Court, Sir Andrew Morritt, ruled that, without appropriate dispensation, all qualifying works in a building are subject to consultation in advance, if they will cost any flat owner more than £250.
January also saw the government challenged in the House of Lords over the existing £500 costs limit in the Leasehold Valuation Tribunal. Baroness Gardner argued that whilst the LVT allowed every leaseholder to bring their case to tribunal, many landlords were charging hefty legal expenses back through management schemes in blocks of flats.
MARCH
The statutory regulation of letting agents of residential property was introduced. Baroness Hayter successfully tabled an amendment to the Enterprise Bill in the House of Lords, in a move that was welcomed by the British Property Federation. However, unfortunately several amendments affecting leasehold property management were withdrawn.
The statutory regulation of letting agents of residential property was introduced. Baroness Hayter successfully tabled an amendment to the Enterprise Bill in the House of Lords, in a move that was welcomed by the British Property Federation. However, unfortunately several amendments affecting leasehold property management were withdrawn.
MAY
A last minute amendment to the Enterprise and Regulatory Reform Bill was introduced by the Government, requiring managing agents in the residential leasehold sector to offer leaseholders and freeholders access to an approved ‘redress scheme’. However the amendment still did not make provision for the mandatory regulation of managing agents, enabling unregulated companies to continue providing block management services and hold clients monies.
A last minute amendment to the Enterprise and Regulatory Reform Bill was introduced by the Government, requiring managing agents in the residential leasehold sector to offer leaseholders and freeholders access to an approved ‘redress scheme’. However the amendment still did not make provision for the mandatory regulation of managing agents, enabling unregulated companies to continue providing block management services and hold clients monies.
JULY
For those block management companies without Chartered Surveyors at their helm and which therefore do not qualify for the stringent regulation of the Royal Institution of Chartered Surveyors (RICS), a new form of regulation, known as ARMA–Q, was announced by the Association of Residential Managing Agents. ARMA-Q aims to raise standards for leaseholders in non-RICS managed blocks, and includes commitment to a new consumer charter.
July 2013 also saw the Leasehold Valuation Tribunal become the First-Tier Tribunal (Property Chamber). The new Property Chamber brings together Rent Assessment Committees, Leaseholder Valuation Tribunals, Residential Property Tribunals, Rent Tribunals, Agricultural Land Tribunals and the jurisdiction of the Adjudicator to HM Land Registry. A new set of procedural rules provide the Property Chamber with greater powers than were previously available to them.
For those block management companies without Chartered Surveyors at their helm and which therefore do not qualify for the stringent regulation of the Royal Institution of Chartered Surveyors (RICS), a new form of regulation, known as ARMA–Q, was announced by the Association of Residential Managing Agents. ARMA-Q aims to raise standards for leaseholders in non-RICS managed blocks, and includes commitment to a new consumer charter.
July 2013 also saw the Leasehold Valuation Tribunal become the First-Tier Tribunal (Property Chamber). The new Property Chamber brings together Rent Assessment Committees, Leaseholder Valuation Tribunals, Residential Property Tribunals, Rent Tribunals, Agricultural Land Tribunals and the jurisdiction of the Adjudicator to HM Land Registry. A new set of procedural rules provide the Property Chamber with greater powers than were previously available to them.
SEPTEMBER
A new procedure for buying and selling flats was introduced to speed up property transactions by between 5 and 10 days. The Leasehold Property Enquiries Form (LPE1) is a standardised questionnaire developed and approved by the Law Society, RICS, ARMA, the BPF and other major property industry trade bodies. Aimed at avoiding the complications and expensive delays sometimes experienced by buyers and sellers of leasehold properties, LPE1 will capture information about a property such as details of ground rate and service charges. In 2014 Daisy Estate Managers will be offering either this new service or completion of the more bespoke questionnaires that many buyers may still prefer.
A new procedure for buying and selling flats was introduced to speed up property transactions by between 5 and 10 days. The Leasehold Property Enquiries Form (LPE1) is a standardised questionnaire developed and approved by the Law Society, RICS, ARMA, the BPF and other major property industry trade bodies. Aimed at avoiding the complications and expensive delays sometimes experienced by buyers and sellers of leasehold properties, LPE1 will capture information about a property such as details of ground rate and service charges. In 2014 Daisy Estate Managers will be offering either this new service or completion of the more bespoke questionnaires that many buyers may still prefer.
NOVEMBER
The Court of Appeal granted permission for an appeal to go ahead against the much criticised decision in the Phillips v Francis High Court case. Daisy Estate Managers will continue to update our clients on this matter throughout 2014.
In other news, government proposals to speed up the judicial review process, including creating a dedicated Land and Planning Chamber to review planning-related appeals, were broadly welcomed by the industry. The new chamber would see judicial review decisions relating to major developments taken only by expert judges and would take advantage of a streamlined process so they are considered as quickly as possible.
The above provides a mere snapshot of a few of the most pertinent events in our industry this year. We look forward to updating our clients on further industry matters and on new or reviewed case law throughout 2014.
Johanne Coupe
The Court of Appeal granted permission for an appeal to go ahead against the much criticised decision in the Phillips v Francis High Court case. Daisy Estate Managers will continue to update our clients on this matter throughout 2014.
In other news, government proposals to speed up the judicial review process, including creating a dedicated Land and Planning Chamber to review planning-related appeals, were broadly welcomed by the industry. The new chamber would see judicial review decisions relating to major developments taken only by expert judges and would take advantage of a streamlined process so they are considered as quickly as possible.
The above provides a mere snapshot of a few of the most pertinent events in our industry this year. We look forward to updating our clients on further industry matters and on new or reviewed case law throughout 2014.
Johanne Coupe
